The financial authorities have completed the redistribution of household loan total volume management targets for mutual finance sectors, including Saemaul Geumgo and credit unions. It is reported that these institutions, which faced penalties for exceeding last year's targets, have been granted some additional lending capacity.
According to financial industry sources and Yonhap News on September 1, the Financial Supervisory Service notified the adjusted household loan total volume increase targets to the mutual finance sector and savings banks.
Earlier, the financial authorities doubled the total household debt increase limit for this year from 1.5% to 3%, redistributing targets by sector and company accordingly. Of the newly secured lending capacity of 30 trillion won, amounts excluding policy reserves for housing supply and support for young and low-to-middle credit borrowers will be allocated to financial institutions.
Saemaul Geumgo and credit unions, which faced a 'net increase of 0%' penalty for exceeding last year's household loan targets, have also secured additional limits through this adjustment. Saemaul Geumgo is reported to receive an additional limit of about 300 billion to 500 billion won, while credit unions will receive an additional limit of 100 billion to 200 billion won.
However, given that household loans have already increased significantly in the first half of the year, the actual capacity for new loans in the second half is expected to be limited. By July of this year, household loans had increased by 2.1 trillion won at Saemaul Geumgo and 1.6 trillion won at credit unions. While this additional allocation may offset some of the excess from the first half, there is virtually no room to increase new loans, such as mortgage loans.
The target allocation for banks, which account for the largest share of household loans, was completed last week. The five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) reportedly received an additional limit of about 2.64 trillion won, expanding their household loan targets by approximately 60% compared to previous levels.
The financial authorities are currently discussing household loan target allocations with the credit card and insurance sectors and will soon provide company-specific targets.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.